Craft a Compensation Philosophy

Lay the groundwork for compensation that is competitive, cost effective, and brand aligned.

Onsite Workshop

Failure to have a compensation philosophy results in:

  • Compensation that is too low, resulting in an inability to recruit people with necessary skills and high turnover.
  • Compensation that is inequitable, resulting in poor engagement and vulnerability to discrimination claims.
  • Compensation that is too high, resulting in turnover that is too low, which can lead to stale ideas and retention of employees with poor organizational fit.

A formalized compensation strategy results in:

  • Improved ability to attract talent and set candidate expectations.
  • Improved ability to engage and retain current employees.
  • Equitable compensation across the organization.

Module 1: Make the case for crafting a compensation philosophy

The Purpose

 Understand business factors and HR trends that are driving the need for compensation planning.

Key Benefits Achieved

 Gain buy-in and context for participation in the workshop.

Activities: Outputs:
1.1 Identify and discuss your compensation challenges
  • Determine common pain points being felt across stakeholder groups

Module 2: Explore internal and external factors influencing compensation

The Purpose

 Discuss internal and external factors to shape your approach to compensation.

Key Benefits Achieved

 Establish a compensation philosophy based on organizational and industry information.

Activities: Outputs:
2.1 Discuss internal and external factors influencing your compensation philosophy
  • Uncover important information that will shape your approach to compensation
2.2 Determine your general market positioning
  • Consciously decide to lead, match, or lag the market
2.3 Identify your competitors for talent
  • Consider your competition when setting market positions and selecting data

Module 3: Draft a compensation philosophy

The Purpose

Develop a specific compensation philosophy to be applied to all compensation practices in your organization.

Key Benefits Achieved

Effectively direct compensation practices to ensure equity and competitive positioning.

Activities: Outputs:
3.1 Uncover fundamental compensation principles
  • Determine your areas of focus
3.2 Develop a compensation philosophy model to clearly illustrate areas of focus
  • Use a graphical illustration to communicate with stakeholders
3.3 Use your compensation principles to select market positioning strategies and targets for salaries and TCC
  • Select your positioning and targets for each employee segment
3.4 Draft your compensation philosophy
  • Documented compensation philosophy

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Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.

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